The price of Ethereum has broken out against Bitcoin for the first time in almost a month as the digital asset sees a renewed bullish momentum. Triggered by Visa’s recent announcement to use USDC stablecoin on the ETH blockchain, Ether is set towards a massive price breakout.
Ethereum’s Price on the Bullish Momentum
During the first quarter, the price of ETH cryptocurrency surged by more than 160%, outperforming even Bitcoin when its price rose by 100%.
With the digital asset’s increased valuation, the demand for the network continued to surge. For instance, the total value locked (TVL) in DeFi lending on Ethereum surged to more than $45 billion since 2020.
Ether is on the rise again and currently trading at $2,004, slightly lower than the all-time high (ATH) at $2,033. With an upward price movement, Ethereum could soon be approaching the $2,500 milestone.
Meanwhile, the number of active Ethereum addresses indicates that the user activity on the Ethereum blockchain has risen in tandem with the price. Data from Glassnode shows that the number of active Ethereum addresses reached a 1-month high at 33,257.
This is optimistic news for any blockchain protocol as the valuation of a network’s token price is supplemented with an increased user activity.
Ethereum’s price will likely react to the performance of the U.S. bond market and the U.S. dollar. A stronger US dollar will likely lead to a weaker Ethereum as the two have an inverted relationship.
Ether Could Outperform Bitcoin
The technical market structure of Ethereum also looks optimistic. Traders are anticipating Ethereum to outperform Bitcoin this quarter, considering it has begun to see momentum on the ETH/BTC pair.
Meanwhile, the ETH/BTC pair continuously stagnated since early March, even when Bitcoin saw a strong uptrend to around $60,000. With the ETH/BTC pair breaking out for the first time since March 9, ETH is rebuilding its technical momentum as it heads towards $2,500.